Lulalend Secures Series B Round to Meet Lending Demands
Lulalend, a digital lender based in South Africa, has announced that it has raised a $35 million (about R600 million) Series B investment, which was headed by Lightrock and included DEG, Triodos Investment Management, and Women’s World Banking Asset Management as investors. Participating investors already in the market included Quona Capital and The International Finance Corporation (IFC).
The startup said in a statement that the funding will be used to meet the soaring demand for the quick working capital that it provides businesses and to speed up the deployment of Lula, its SME-focused digital banking product.
The key to enhancing the well-being of society is to provide access to borrowers who would not otherwise be granted it. This is especially pertinent to lending in Africa, where many people have difficulty accessing physical bank branches.
In fact, specifically in South Africa, the range of possibilities is growing because of the usage of big data, AI, machine learning, and open banking-enabled technologies. Geographical restrictions are being circumvented thanks to innovative products and rising internet penetration rates. In place of traditional credit ratings, more advanced data analysis methods are now available, enabling simpler credit choices.
Given its power to multiply, access to credit among all financial services may be the most crucial. In order to achieve this, creative digital marketing techniques and cutting-edge technology are enabling lenders to reach demographics that have traditionally received poor service while protecting their own interests.
Online small enterprises can apply for loans from R10,000 ($576) to R5,000,000 ($57,630) through Lulalend. As a digital lender with entirely flexible payback conditions, Lulalend raised $3.5 million in a Series A round in June 2019, and in December 2021 it raised $7 million in an undisclosed round.
Fintech lenders are developing solutions that will enable them to offer digital loans to their clients in a way that is efficient and secure for all parties. In addition to an AI-driven cash flow management tool and real-time funding access through Lulalend’s current funding solutions, Lula will provide a bank account specifically designed for small and medium-sized businesses.
Trevor Gosling, co-founder, and CEO of Lulalend stated that the company’s services simplify, save time, and enable users to concentrate on expanding their business.
“We believe that Lula will be a game changer for South African small business owners, enabling them to manage their entire cash flow from one highly intuitive digital platform. Simplifying their lives, saving time and allowing them to focus on growing their business.
“Above all else, we’re determined to ensure that this investment ultimately benefits the more than 2 million formal and informal SMEs in South Africa whose financial needs remain grossly underserved,” Gosling added.